When asked why Telstra was holding on to the business, a spokesman for Telstra said last year the company licensed the Trading Post brand to website design and marketing company Unique Websites. This multi-year agreement is believed to preclude a sale.

Telstra said Trading Post was never considered part of its recent sale of directories business Sensis, because nine months ago it was shifted to Telstra’s digital media business. This business includes applications for the sporting codes AFL and NRL, as well as T-Box movies.

The telco said Trading Post was profitable, although it does not break out its results. The spokesman could not answer before deadline whether profit and revenue had risen or fallen at Trading Post last year.

It’s nearly 10 years since the cashed-up Telstra paid a hefty $636 million for Trading Post Group, an auction in which Fairfax Media – publisher of BusinessDay – expressed interest.

The purchase was gradually written down, despite Trading Post’s traditional strength in car sales. Broker Citi said print directories comprised about 11 per cent of Australia’s $12 billion-plus advertising market as late as 2009, the year in which Telstra announced it would close Trading Post’s weekly print edition in favour of online-only. They now sit at about 7 per cent.

Online has for years increased its total share of ad spending, but Trading Post has faced strong competition from the likes of carsales.com.au, eBay Australia, gumtree and the dominant real estate classified site realestate.com.au.

‘‘They paid an enormous amount money with not a lot of expertise and they didn’t make the digital transition well,’’ said one industry insider. ‘‘What’s it worth? Not a lot. As a digital business, it wouldn’t get a lot because it’s not a market leader.’’

Company Profile

This week, Telstra announced the sale of 70 per cent of Sensis to US private equity fund Platinum Equity for $454 million, excluding its voice directories business. It also recently sold a 74 per cent stake in its Hong Kong mobile business CSL for $2 billion.

In a conference call with analysts, Telstra chief executive
David Thodey
said the Sensis sale would “in the end deliver the best outcome for our shareholders", despite an accompanying accounting loss of about $150 million. Earnings before interest, taxation, depreciation and amortisation have been declining at 20 per cent a year at Sensis.